SUBJECT: Establishment of the Delaware Higher Education Loan Program under Part B,Title 4 of the Higher Education Act of 1965.

WHEREAS, the Committee created by Executive Order #19, April 4, 1966, for the implementation of Delaware's guaranteed student loan program under Title 4, Part B of Public Law 89-329, Higher Education Act of 1965, has submitted its report and recommendations for the establishment of a program of loans to residents of Delaware under date of June 30, 1966;

NOW, THEREFORE, I, Charles L. Terry, Jr., by virtue of the authority vested in me, as Governor of the State of Delaware, do hereby order that this Committee heretofore appointed under and by Executive Order #19 shall continue to serve as the governing body of what shall be hereafter known as the Delaware Higher Education Loan Program. The membership of this governing body shall continue to be composed of representatives of the participating educational institutions with Harold Kaufman, Assistant Dean, University of Delaware as Director; William R. M. Osborne, Business Manager of Wesley College as Associate Director; and one other member as selected by the President of Delaware State College as Second Associate Director. This Committee, as the official State agency, shall retain all responsibility for setting all policies and procedures necessary for the operation of the program.

FURTHER, the Directors of this program shall have authority to negotiate and prepare all contracts and agreements to be signed by me as Governor with private non-profit agencies or organizations, such as the United Student Aid Funds, Incorporated, whose function would be to administer the program under the control and supervision of the State governing body. The State governing body, shall generate and enact all rules and regulations necessary for the proper operation and continuance of this program. They shall be empowered to receive such funds as may be granted to this program whether from public sources or from persons, firms, corporations, associations, trusts and foundations for the establishment, support, and promotion of the objectives of the Delaware Higher Education Loan Program.

FURTHER, the State governing body by and through its Directors shall have the power to contract for the guarantyship of loans with any administering agencies such as the United. Student Aid Funds, Incorporated, In this regard it shall be the responsibility of the administering agency such as the United Student Aid Funds, Incorporated, to guarantee the repayment of all loans as well as to absorb all costs of administration and litigation. The State governing body shall also have the power to distribute such funds as may be received and deposited with it.